Los Angeles, California – A new California law, SB 642, officially known as the Pay Equity Enforcement Act, is set to reshape the state’s labor landscape and bring hope to thousands of Latina workers struggling with wage disparities.
Signed by Governor Gavin Newsom on October 8, 2025 — Latina Equal Pay Day — the bill enhances the California Equal Pay Act to promote fair pay and enforcement. As it prepares for implementation in January 2026, many see SB 642 as a major step toward economic justice for women in California.
Strengthening Equal Pay in California
Under Senate Bill No. 642, employers are required to take new steps to ensure pay transparency and accountability. The law broadens the definition of “wages” to include stocks, benefits, and bonuses — forms of compensation that often hide true income disparities.
It also mandates companies to provide “good faith estimates” of salary ranges in job postings and to update outdated gendered language to foster inclusivity. These updates support the broader goal of closing the wage gap for California Latinas, who currently earn only 49 cents for every dollar earned by white men, according to a UCLA study.
By extending the statute of limitations to three years for wage discrimination claims, SB 642 allows workers to challenge unfair pay practices and recover lost wages caused by ongoing employer discrimination.
How SB 642 Expands Fair Pay Protections in the Workplace
The passage of SB 642 reflects growing attention to equity and transparency in the workplace. For California workers, especially Latinas and other underpaid groups, this law strengthens their right to demand fair pay and seek justice under state labor laws.
Key provisions that impact employees include:
- Expanded wage definitions: Ensures all forms of compensation are considered when comparing pay.
- Mandatory pay range disclosures: Employers must provide transparent salary estimates upon hiring.
- Longer recovery period: Allows wage discrimination victims to recover up to six years of lost pay.
- Inclusive language updates: Protects workers of all gender identities from pay inequity.
These updates encourage fair labor practices and give employees more legal options to challenge discrimination or underpayment at work.
Your Partner in Pursuing Equal Pay and Workplace Justice
If you believe you are being underpaid or facing discrimination at work, you don’t have to handle it alone. Our experienced employment lawyers in California can help you understand your rights under SB 642, assess your pay equity claim, and pursue legal action to recover the wages you deserve.
Contact us today for a free consultation to discuss your situation and learn how we can help you protect your rights and secure fair compensation.
